Prince’s CD giveaway another nail in the album’s coffin

A UK newspaper gave away nearly 2.8 million copies of Prince's upcoming album …

Last weekend, diminutive, purple-loving rock star Prince upset music industry executives and retailers alike by deciding to give away copies of his upcoming CD, Planet Earth, via the Mailon Sunday in the UK. The results are in, and it appears that the giveaway was a big success for the newspaper. At the same time, it demonstrates the degree to which the album is becoming irrelevant to the record labels.

The Mail reported sales of at least 2.8 million papers last Sunday, compared to the June's Sunday average of 2.276 million, according to figures obtained by the Guardian. Mail on Sunday managing director Steve Miron pegged the cost of the promotion at £1.25 million, including a £250,000 payment to Prince for the rights to the album.

When plans for the giveaway were announced last month, retailers and industry figures alike pilloried Prince's decision. Paul Quirk, cochairman of the Entertainment Retailers Association, said that Prince might soon be known as "The Artist Formerly Available in Record Stores.

"This decision beggars belief," Quirk said in a statement. "It is an insult to all those record stores who have supported Prince throughout his career."

Prince's label, Sony BMG UK, was also irritated by the move, with a representative of the company telling the International Herald Tribune that trying to sell the CD in the UK was "ridiculous" in light of the free CD. The rep then added that the label was still "delighted" to be associated with him.

Does the album really matter?

Prince's free CD was noteworthy not only in that it marked the first time a music icon of his stature gave away a new album of original music, but also because it demonstrates the degree to which album sales no longer matter as much to artists. After all, tours are where most acts make most of their money, and the fact that the music sales have been in a tailspin for the better part of this decade is not news to anyone at this point.

There are a number of factors behind the sales slide, but one important takeaway is that the album is no longer the primary means for an artist or group to get their music into the hands of the public. Most bands have pages on MySpace where would-be fans can sample their wares. Others, like the Barenaked Ladies, have released albums on USB flash drives. Trent Reznor of Nine Inch Nails has even released versions of his songs for fans to rework using GarageBand.

It's not about the album any more, and while that's a mixed bag for artists, it's definitively bad news for the record labels. Although digital sales have been on an upswing since 2004, paid downloads are not sufficient to make up for the steep decline in sales of albums and other physical media. Licensing deals and royalties may be able to partially offset the decline, but there's no going back to the good old days.